CAPITULO V PAGOS A CUENTA
ARTÍCULO 135 BIS. INSPECCIÓN DEL IMPUESTO
Nowadays, to survive the fierce competition in the industrial B2B markets, companies are seeking to differentiate their solutions through customizing and tailoring the offerings to the customer needs. The customer-centric approach widens companies' product port- folio and calls for a variety of expertise. A project is an organizational form supporting the mobility of the expertise and competencies across the organization. Project business is associated with challenges, namely due to the nature of projects as well as the non- permanent structures. Each project is unique, and each project is temporary, making the project planning challenging. For a successful sale of a project, it is imperative to max- imize the customer's perceived value, which convinces them to invest in the supplier's solution (Kotler and Keller, 2012). The supplier's profitability, however, cannot be forgot- ten, as profits are essential for organizations to survive. The balance between the CPV and the supplier’s profit is essential, and it is achievable through cost reductions in the supplier’s operations, by ensuring the efficiency and effectiveness of the process and quality control (Nicoletti, 2012; Bradley, 2015). The concepts of efficiency and effective- ness lie in the heart of lean six sigma philosophy, aiming at eliminating ‘wastes’ and defects in the business operations.
This thesis is an exploratory case study, where the researcher faces a problem related to project cost variances. The senior sales and technology manager and the cost esti- mator in the case organization want to ensure that the project costs are estimated cor- rectly since cost estimation is the core of determining the project’s success as well as the profitability of the organization. The main objective of this thesis was to develop a method for reducing project cost variance by improving the quality of the cost estimation process for a case company, which is an industrial project-based firm. A systematic method, allowing for increased quality and potentially increased accuracy of the cost estimation is a source of competitive advantage for the firm since it enables the company to present competitively-viable prices to the customer without risking or compromising its own profit margins.
The supporting research questions included identifying whether there exists a notion of acceptable cost variance, investigating existing accepted project variance limits as well as identifying concrete areas of improvement for the case company. The scope of the case study was narrowed down to one department within the case company and to the factors that are internal to the organization, rather than external and uncontrollable. The research specifically concentrates on the sales phase of the project and on the process
of cost estimation as an area of project cost management. To reach the objectives of the investigation, the researcher needed to submerge themselves into the daily operations of the organization to gain a deep understanding of the current situation and processes as well as the product portfolio.
For the purpose of meeting the objective of the thesis, a new risk category was intro- duced. These risks are rooted within the firm and are not advised to be covered with contingency reserve. Instead, based on the typical pitfalls and challenges of cost esti- mation, root causes of project variance as well as the best available practices, a method that mitigates these internal foreseen risks is developed. The main contribution of this thesis is the proposed general method for increasing the quality of cost estimation and subsequently reducing the project variance in the context of the project business. The method addresses the challenges and pitfalls of the process of cost estimation described in the literature. The reliability of the method was tested by applying the method to the context of the case company.
The work emphasizes the importance of knowledge management for sustainable busi- ness development as well as the role of a methodological and systematic approach within a company. The importance of historical information in cost estimation and sales is highlighted, and historical information was deemed especially important in the early stages of cost estimation. With a good quality historical information archive, the initial estimates are more accurate and lay a good fundament for subsequent estimation tech- niques to build on. Furthermore, having the cost data archive eliminates the need to create an estimate from the very beginning, saving cost estimator a significant amount of time.
From a managerial perspective, this thesis sheds a light on the requirements for the cost estimation process as an integral part of the sales process. The management is encour- aged to promote the idea of systematic documentation, reporting and archiving, as well as setting the information requirements for the stages of the cost estimation process together with the cost estimator. The case company already has guidelines for the sales and planning processes, but a comprehensive set of guidelines for the cost estimation process is yet to be introduced. Cost estimation is a multifaceted discipline, requiring a wide range of competencies, which in practice is achieved by gathering information from other project members. Thus, it is recommended to demystify the importance of cost estimation to all the internal stakeholders in the case organization in order to create an understanding of the common practices and the standard quality of information that the cost estimator needs. Making the process more lean requires elaborating on the infor- mation requirements within the case organization. Additionally, it should be monitored
that the stages of cost estimation should be followed systematically and in order. Moving past a milestone implies that all the previous stages have been completed.
From the theoretical point of view, this research offers an insight into project complexity and ties together the individual elements of cost estimation methods, techniques and processes to create a holistic framework on managing quality of cost estimation and reducing the project variance. There is potential for further research in the areas of the computer-aided cost estimation and its role in the context of project business. In addition, the generalizability and transferability of the method are to be tested among other pro- ject-based industrial firms to confirm the validity of the method. Even though the re- searcher was able to adapt the method to the case firm, more context specification may be required.
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